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     T R O U B L E D   C O M P A N Y   R E P O R T E R     

                        E U R O P E

         Friday, December 29, 2000, Vol. 1, No.165

                        Headlines


B E L G I U M

LERNOUT & HAUSPIE: Re-files for Creditor Protection


B U L G A R I A

BIOCHIM BANK:  Bulgaria Extends Bid Deadline


F I N L A N D

SONERA: Hits Year Lows as Debt Worries Weigh


G E R M A N Y

PHILIPP HOLZMANN: Seeks EU Approval for 250 Mln DM in State Aid
T-ONLINE: Hits New Low on Year-End Book


I R E L A N D

RAPID TECHNOLOGY:  Cuts Loss to 1.5 Million Pounds


P O L A N D

BANK CZESTOCHOWA:  Under Collective Administration
BANK CZESTOCHOWA: Posts a Nine-Month Net Loss


R U S S I A

NORSI OIL:  Goes Up for Sale
SLAVNEFT: Oil Company Starts Reorganization


S P A I N

QUEPASA.COM: Up for Sale


S W E D E N

STOCKHOLM NEWS:  Goes into Voluntary Liquidation


U N I T E D   K I N G D O M

ALLIANCE CORPORATION: Liquidation Proceedings
ALTIMO LTD: Liquidation Proceedings
CBC OXFORD: Liquidation Proceedings
C&A: Rivals Poised to Take Over Stores
CW CHENEY:  Receiver after Fund Puzzle

CORUS: Government 'Powerless' to Stop Job Cuts
DAVERNS QUALITY: Liquidation Proceedings
EQUITABLE LIFE: Orange Drops Equitable as Pension Scheme Manager
EQUITABLE LIFE:  Aegon Won't Comment on Bid Report
GEORGIAN GOLDSMITHS: Liquidation Proceedings

HUNTER ENGINEERING: Liquidation Proceedings
JAYMILL LTD: Liquidation Proceedings
KILMARTIN CONSTRUCTION: Liquidation Proceedings
P&O: Sells Half Of Unit to Cut Debt
TOMKINS: Report Clears Former CEO Hutchings

UNIVERSAL BANK: Nationwide and Egg to Help Fund
VAUXHALL:  Employees Should be Consulted on Closure, Say Unions
VERSAILLES: Investors Ready to Sue Carl Cushnie


=============
B E L G I U M
=============

LERNOUT & HAUSPIE: Re-files for Creditor Protection
---------------------------------------------------
Lernout & Hauspie, the debt-laden voice recognition software
company, said it has re-filed for protection from creditors in
Belgium, Reuters reports this week. "After long deliberations with
the lawyers, the board has decided to file a new petition for
concordat with the Ieper court," an L&H spokesman told Reuters.
The spokesman said the filing took place on Wednesday with the
Commercial Court in Ieper. A spokesman for the court said it would
hear the company's case at 1300 GMT on January 3. The court has up
to 15 days to make its ruling after the hearing.

The Commercial Court in the western Belgian town of Ieper, where
L&H has its headquarters, on December 8 rejected the company's
request for a concordat, which provides protection from creditors
while a company restructures. The court said that L&H had failed
to provide sufficient financial information. L&H previously had
said it would appeal the ruling. "The board felt the best chance
for success is going to Ieper again," the L&H spokesman said of
the decision. "In Ieper, we have immediate protection (from
creditors) from the moment of filing," he added.

The company believed that the Ieper Commercial Court would rule
more quickly than the Appeals Court in Ghent, the spokesman said.
The spokesman said the new filing included updated financial
figures based on new information, including the results of the
company's internal audit. L&H last week disclosed that its
internal audit committee had found that revenues for the 2-1/2
years ended June 30, 2000, had been overstated by as much as $277
million. The company earlier this year had said it would restate
results for 1998, 1999 and the first half of 2000. L&H, whose
stock had traded above $70 last March on both the U.S. Nasdaq and
pan-European Easdaq before falling to almost zero, is already
operating under Chapter 11 bankruptcy protection in the U.S.,
Reuters noted.


===============
B U L G A R I A
===============

BIOCHIM BANK:  Bulgaria Extends Bid Deadline
--------------------------------------------
Bulgaria said it extended by four weeks the deadline to draw bids
for a majority stake in state Biochim Bank. "Candidate buyers can
place bids until 5:00 p.m. on January 24, 2001," said the Bank
Consolidation Company (BCC), which is the government body in
charge of bank sell-offs.

The BCC hopes to sell the bank by the end of March next year. BCC
manages 99.6 percent of Biochim's capital, the remaining 0.4
percent is owned by private companies and individuals. Reuters
noted this week that there has been no official statement so far
on the size of the stake to be offered for sale but Bulgaria
should sell at least 67 percent of Biochim under its three-year
funding agreement with the IMF that expires in mid-2001.

Banking sources said Bank Austria, Commercial Bank of Greece,
Italy's Banca Nazionale del Lavoro, France's BNP Paribas,
Raiffeisen Zentralbank and local Hebrosbank owned by iRegent Group
had expressed interest in the sale. At the beginning of November,
the BCC allowed Bank Austria in Biochim to study its financial
state. Biochim posted 7.3 million levs loss ($3.26 million) for
the first nine months of this year.


=============
F I N L A N D
=============

SONERA: Hits Year Lows as Debt Worries Weigh
--------------------------------------------
Shares in Finnish telecom operator Sonera touched year lows, hit
by worries about how it will pay off debt. The share is now 81
percent below its life-high of 97 euros touched at the peak of the
tech share bubble in March, Reuters reports this week.

Such debt concerns, along with recent comments from analysts and
industry players re-evaluating the potential demand for third-
generation (3G) services, have plagued 3G license holders across
Europe, sending their shares lower. "Sonera's net debt has reached
around six billion euros (due to third-generation license costs),
and it is easy to calculate how this will lead to a substantial
increase in financial costs, it is a concern," said analyst Jussi
Hyoty at FIM Securities. "At its current level the share is fairly
priced, but given the financial costs, there could be some
negative surprises next year," he said.


=============
G E R M A N Y
=============

PHILIPP HOLZMANN: Seeks EU Approval for 250 Mln DM in State Aid
---------------------------------------------------------------
Philipp Holzmann AG's 250 mln dm aid from the German government is
expected to be approved by the European Commission by early
February, Die Welt newspaper said, citing EU diplomats. Germany
sought EU approval last year of a 150 mln dm government financial
aid to Philipp Holzmann and another 100 mln dm in state
guarantees, AFX reports this week.

Wright Investors' Service last week that Philipp Holzmann, founded
in 1849 and publicly traded since 1969, is a diversified
construction company. Holzmann is comprised of four main
divisions: general construction, project business (development of
real estate, design and construction of industrial plants),
services (construction consultancy services, management services)
and civil engineering including trade in construction materials.

At the end of 1999, Philipp Holzmann AG had negative working
capital, as current liabilities were 5.56 billion Euro while total
current assets were only 5.50 billion Euro.


T-ONLINE: Hits New Low on Year-End Book
---------------------------------------
Shares of Europe's largest Internet service provider T-Online fell
to a new lifetime low as investors tweaked portfolios before
closing positions for the year. T-Online stock was down 5.92
percent at 12.40 euros, having earlier hit a record low of 12.30
euros. Reuters reports this week that losses in the stock
accounted for almost half of the 1.31 percent slide on the Neuer
Markt Nemax 50 growth index.

Wright Investors' Service noted last week that this company has
paid no dividends during the last 12 months. The company also
reported losses during the previous 12 months. The company has not
paid any dividends during the previous three fiscal years.


=============
I R E L A N D
=============

RAPID TECHNOLOGY:  Cuts Loss to 1.5 Million Pounds
--------------------------------------------------
Rapid Technology has cut its losses by 29pc to 1.5 million pounds
for its full year to June, Doras reported last week. The company
says that it cut its costs by 10pc, leading to a drop of 30pc in
operating losses to 1.5m pounds. The results did not please the
stock market, however, which marked the company's shares down by
75 cents to 105 cents.


===========
P O L A N D
===========

BANK CZESTOCHOWA:  Under Collective Administration
--------------------------------------------------
The Banking Supervision Commission resolved to subject, as of
December 27, Bank Czestochowa SA under the collective
administration, the commission reported in a communique on
Wednesday. At the same time the commission approved the taking
over of both 75 percent of shares in Bank Czestochowa SA and the
issue of new shares by BRE bank SA, Polish Press Ag & Euromoney
noted this week.

According to a declaration of the investor (BRE bank SA), it will
ensure Bank Czestochowa liquidity, allowing all of the bank's
divisions for resuming operations within 24 hours after the
collective administration is introduced, the commission wrote.

Bank Czestochowa SA has suffered problems with financial liquidity
since the beginning of December. On December 12 the general
meeting of shareholders resolved to issue between 1,500,000 and
7,000,000 shares of D series to raise its capital to the sum
ranging between 15 million (ca. 3.5 million) and 70 million
zlotys, Polish Press Ag & Euromoney noted.


BANK CZESTOCHOWA: Posts a Nine-Month Net Loss
---------------------------------------------
Poland's BRE Bank said its agreed takeover of the small and ailing
local Bank Czestochowa will help it grow in the important retail
sector, Reuters reports. The Banking Supervision Commission (KNB)
said it had cleared BRE to take more than 75 percent of the voting
rights in Czestochowa, which had been forced to close its outlets
in December following reports it was in financial trouble. "It
will be a long-term investment for BRE Bank, which plans to use
the organizational structure of Bank Czestochowa to offer retail
banking services," BRE said.

BRE portrayed the Czestochowa purchase as a boost for its plans to
expand in the retail sector. Czestochowa has 10 outlets in the
southern Czestochowa region. Czestochowa said in early December
that it would not have faced problems were it not for the media
reports, which caused a run on its deposits. Shares in
Czestochowa, whose key shareholders are local steel mill Huta
Czestochowa, the Czestochowa municipality, the treasury and state-
controlled WFOsIGW environmental fund, were at 14.5 zlotys each
when they were last traded.

Czestochowa, which had assets of less than 200 million zlotys at
the end of September, posted a net loss of 4.4 million zlotys in
the first nine months of the year, Reuters noted.


===========
R U S S I A
===========

NORSI OIL:  Goes Up for Sale
----------------------------
According to Info-Nova, the Russian federal property fund has
drafted and submitted to the government all documents on the
privatization of the state holding in the Norsi Oil company, said
fund head Vladimir Malin. Skrin Issuer noted this week that the
state holding (85.5 percent) would be divided into two parts (40
and 45.5 percent), which will be sold successively.

According to Malin, the buyer of the shares should supply six
million tons of oil per year to the Norsi oil refinery, a Norsi
Oil subsidiary. The fund also intends to demand that the new owner
repay Norsi Oil's debt to the budget worth R2.5 billion (total
debt of the company is around R5b). Lukoil, which owns a 9 percent
stock in Norsi Oil, is currently the main contender for the
company, Skrin Issuer reports.


SLAVNEFT: Oil Company Starts Reorganization
-------------------------------------------
Skrin Issuer reported last week that according to RBC, the
structure of the Slavneft oil company, which was formed in 1994,
turned out to be unsuitable for the tough and competitive market
economy. The demand for oil of two oil refineries of Slavneft is
higher that the company's volume of oil production. "We have
purchased five small oil companies and are going to take control
of several medium enterprises, such as Varieganneft," Slavneft
president Mikhail Gutseriyev announced.

However, a rise in the volume of production requires time and
significant investments. The main reason for these purchases was
Slavneft's privatization, scheduled for 2002. These purchases were
approved by the state and that will promote a higher price for
Slavneft, deputy chairman of the Russian Federal Property Fund
Dmitry Mazepin stated. Slavneft is expected to present a program
of its development at the beginning of 2000, and this program will
explain the company's recent policy, the Vremya Novostey newspaper
reported.

Wright Investors' Service noted last week that as of December
1998, the company's long term debt was 266.99 million Russian
Rubles and total liabilities were 3.49 billion Russian Rubles.


==========
S P A I N
==========

QUEPASA.COM: Up for Sale
------------------------
The Deal reports this week that cutting a startup's burn rate
doesn't help much if revenues are also falling. That's what
quepasa.com Inc. discovered December 27. The Spanish language
Internet portal and search engine, whose market capitalization
once topped $500 million, bid adios December 27 with plans to
liquidate its assets. The move comes a week after the company said
it was facing delisting from the Nasdaq and more than a month
after the company cut 38 jobs, or two-thirds of its staff, in an
attempt to streamline the business.

The Web site went public in June 1999, about the time Internet
stocks began to slide. It traded as high as $26.88 in July 1999,
giving it a market cap of more than $500 million. In mid-day
trading December 27, the stock dropped 25 percent to nine cents,
giving it a valuation of just $1.8 million. The company's
principal assets for sale include the quepasa.com Web site, three
wholly-owned subsidiaries-RealEstateEspanol.com, Etrato.com, an
auction site, and Credito.com, a finance site-along with
furniture, fixtures and equipment. A meeting of shareholders to
approve the plan is expected in three to four months.

The company will continue to operate the quepasa.com site and the
other three sites during the liquidation process. Glenn Powers, an
analyst with Roth Capital Partners, Inc.-the investment firm's
previous incarnation, Cruttenden Roth Inc. helped take quepasa.com
public-said quepasa.com has been for sale for around six months.
Powers said at its peak in the first quarter of 2000, quepasa
burned about $11 million a quarter. In the third quarter of 2000,
its burn rate was down to $6 million or $7 million, he said, and
would be much less in the current quarter.

Quepasa reduced its workforce from 58 employees to 20 in November
and will further reduce it during the liquidation process. It will
take a one-time restructuring charge of approximately $880,000 in
the fourth fiscal quarter ending December 31 in connection with
the reductions, The Deal noted.


===========
S W E D E N
===========

STOCKHOLM NEWS:  Goes into Voluntary Liquidation
------------------------------------------------
Dutch newspaper publisher De Telegraaf said its unit Stockholm
News would hold an extraordinary meeting of shareholders on
January 8 to decide on a voluntary liquidation of the Swedish
firm. "All main shareholders, and De Telegraaf, support the
proposal to liquidate," the Dutch group said. Last November, it
took a majority stake in Stockholm News and at the end of that
month the free daily newspaper's shareholders decided to raise new
capital and to appoint a new board of directors, Reuters reports
this week.

"However, new financial calculations made jointly by the
management and the new board indicate that the new capital thus
raised would not be enough to take the newspaper to
profitability," De Telegraaf said. It did not disclose any details
of the investments it has made in Stockholm News, which had a
circulation of 145,000.


===========================
U N I T E D   K I N G D O M
===========================

ALLIANCE CORPORATION: Liquidation Proceedings
----------------------------------------------
Company Name: Alliance Corporation (UK) Ltd
Company No: 3014841
Com. Business: Service Co
Appointed on: 20/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Stephen R Cork IPno: 8627
Firm Name: Smith & Williamson
Address: 1 Riding House Street
City Postcode: London W1A 3AS


ALTIMO LTD: Liquidation Proceedings
------------------------------------
Company Name: Altimo Ltd
Company No: 3908745
Com. Business: CMT
Appointed on: 20/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kikis Kallis IPno: 4692
Firm Name: Kallis & Co
Address: Mountview Court 1148 High Road Whetstone
City Postcode: London N20 0RA


CBC OXFORD: Liquidation Proceedings
------------------------------------
Company Name: CBC Oxford Ltd
Company No: 2899248
Com. Business: Medical Communications Consultants
Appointed on: 20/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Ian Vickers IPno: 8953 Chris Laughton 6531
Firm Name: Levy Gee
Address: 66 Wigmore Street
City Postcode: London W1A 3RT


C&A: Rivals Poised to Take Over Stores
--------------------------------------
Fashion chain C&A says it has let almost two-thirds of its store
portfolio as the retailer prepares to pull out of the UK, Ananova
reports this week. High street rivals, including Next, Littlewoods
and New Look, are among a clutch of leading names to have struck
deals for the available space. C&A announced in June that it was
ending 75 years of UK trading and there were fears that its
departure could hit some town and city centres hard. But Redevco,
the property arm of C&A, said it had received strong interest from
other retailers, with many sites attracting several bids.

Andrew Vaughan, managing director of Redevco, said: "When we
started out six months ago, we were in the unique situation of
dealing with 4.5 million square feet in one exercise. We have done
better than we first thought."

Of C&A's 109 stores, more than 60 have been let, with the vast
majority of the remainder subject to negotiations or set to be
redeveloped. The rental value of those deals completed so far
amounts to around two-thirds of the portfolio. Mr Vaughan said the
majority of C&A stores were expected to close next month, with the
rest being wound down by May, Ananova noted.


CW CHENEY:  Receiver after Fund Puzzle
--------------------------------------
The official receiver has stepped in to take control of Birmingham
lock maker CW Cheney & Sons, following the disappearance of 3m
pounds from its pension fund, Electronic Telegraph reports
yesterday. The High Court appointment followed a request from the
DTI, which was prompted by Independent Trustee Services (ITS), the
company brought in October to manage the fund and trace the
missing cash. ITS director Chris Martin said: "CW Cheney & Sons is
obliged to make up the deficit, but I was concerned that enforcing
a demand of around 3m pounds could destroy the business. I hope
the Secretary of State's intervention will lead to the
preservation of the business for the benefit of the employees and
members."

The scheme has about 200 members and can keep paying pensions for
"several months", says Nick Moser of Taylor Joynson Garret, the
law firm acting for ITS. Police are trying to trace Dixit Shah, a
London solicitor whose law firm Morgan Matisse signed off on the
accounts in April. Mr Shah - who left England for Bombay in
September is already being sought by police in connection with the
disappearance of 6m pounds from a chain of solicitors he
controlled. Kevin Sykes, the Cheney pension scheme's former
administrator, was reported last month to have denied there was
any money missing. In a separate move, Cheney director Cassius
Powell is understood to have asked the courts to appoint an
administrator.


CORUS: Government 'Powerless' to Stop Job Cuts
----------------------------------------------
The government is virtually powerless to persuade the country's
biggest steel firm to accept a rescue package for factories facing
closure, claims a leading MP. Martin O'Neill, chairman of the
Commons trade and industry committee, told the Financial Times
that the government's proposals had met with a "cool" response
from Corus, which was formed through a merger between British
Steel and Dutch firm Hoogovens.

Corus is expected to announce thousands of redundancies in 2001.
The government's ability to subsidise the steel industry is
limited by European regulations designed to ensure a level playing
field. But the government can bargain on issues such as local
business rates to make it more likely that companies will stay,
Ananova reports this week.

Corus confirmed that a politically-led package would not alter its
restructuring plans. This week the Iron and Steel Trades
Confederation told Corus officials there would be serious
consequences if there were compulsory job losses in the New Year.
Union members at Corus's Scunthorpe works will be balloted on
possible industrial action in January. Corus says it is committed
to minimizing job losses and been involved in extensive talks with
unions since July, Ananova noted.


DAVERNS QUALITY: Liquidation Proceedings
-----------------------------------------
Company Name: Daverns Quality Shoe Co Ltd
Company No: IR
Appointed on: 20/11/00
Type: Members
Appointed by: Members
Liquidators: Raymond Ryan
Firm Name: Ryan & Crowley
Address: Abercorn House 57 Charleston Road
City Postcode: Dublin 6


EQUITABLE LIFE: Orange Drops Equitable as Pension Scheme Manager
----------------------------------------------------------------
Orange, the mobile phone company, has dropped Equitable Life as
manager of its employee pension scheme in favor of Legal & General
and Deutsche Asset Management, Financial Times reports this week.
The move follows a decision to replace the existing scheme with an
enhanced direct contribution scheme. The shift is intended to
coincide with the introduction of low-cost stakeholder pensions in
April. Orange has 11,000 staff in the UK, more than two-thirds of
whom have signed up to the new scheme.

Pension industry sources say that the decision to move from
Equitable Life is unconnected with the crisis which led Equitable
Life to close its doors to new business earlier this month.
Instead they say it is part of a wider trend whereby pension fund
trustees are looking increasingly to passive fund managers to
manage most of their money, with the remainder spread around
several specialist fund managers.

Pension funds trustees have tended to put their funds entirely in
the hands of one of the big five pension fund managers, who then
had the job of allocating it between various assets such as bonds
and UK or overseas equities. Together with Barclays Global
Investors, Legal & General is the dominant passive fund manager in
the UK. Passive funds track defined stock indices rather than
seeking to outperform industry standard benchmarks.

Equitable, which now has Chris Headdon as its chief executive, has
been seeking a buyer for its asset management business as part of
efforts to raise cash to plug the 1.5bn pounds hole created by the
House of Lords ruling in July that the mutual insurer has to meet
claims from guaranteed annuity holders in full. Aegon, the Dutch
insurer which owns Scottish Equitable, is understood to have
offered 300m pounds for the business, FT reported.


EQUITABLE LIFE:  Aegon Won't Comment on Bid Report
--------------------------------------------------
Dutch insurer Aegon NV refused to comment on reports it was
leading the bidding for the investment management business and
sales force of troubled British insurer Equitable Life. "Our
policy is not to comment on rumors," said spokesman Gijsbert
Siertsema. In London, a spokesman for Equitable also declined to
comment, saying only: "Our objective is to get the best possible
deal for our policy-holders." The British Sunday Telegraph said
this week Aegon was the leading bidder for Equitable's asset
management business and 400-strong sales force, with an offer of
300 million pounds ($444 million).

Analysts said it was difficult to value the reported bid, since it
was unclear how Equitable's 33 billion pounds in assets under
management would be separated from claims from Equitable's policy
holders. "Of Equitable's investment management business, 98
percent is money from Equitable Life. So everything depends on the
conditions under which they separate the risk in that money from
the investment business," said Chris Hitchings, a London-based
analyst for Commerzbank.

Reuters reports this week that in a possible split sale, Aegon was
widely seen as a logical candidate for the asset management
business, but analysts said many others parties would also be
interested. "Aegon wants to grow in the U.K. Their distribution
channels are okay, what they need is further asset management.
Just buying that part from Equitable would be exactly what Aegon
needs," said Andreas de Groot van Embden, analyst at Fortis bank.

Equitable, Europe's oldest mutual, is trying to sell parts of its
business after it lost a court ruling earlier this year that left
it with 1.5 billion pounds in liabilities. Negotiations for a sale
to rival British insurer Prudential collapsed, forcing Equitable
to close its door to new business. In November, Aegon said it
wanted to be in the top five insurers in Britain and said any
takeover would have to meet its 11 percent return on investment
target.


GEORGIAN GOLDSMITHS: Liquidation Proceedings
---------------------------------------------
Company Name: Georgian Goldsmiths Ltd
Company No: 0949242
Com. Business: Jewellery Retail/Specialists
Appointed on: 20/11/00
Type: Members
Appointed by: Members
Liquidators: Geoffrey A Gee IPno: 6272
Firm Name: Barber Harrison & Platt
Address: 2 Rutland Park
City Postcode: Sheffield S10 2PD


HUNTER ENGINEERING: Liquidation Proceedings
--------------------------------------------
Company Name: Hunter Engineering Ltd
Company No: SC
Appointed on: 20/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: William D Robb IPno: 5199
Firm Name: W D Robb
Address: Scott House 12/16 South Frederick Street
City Postcode: Glasgow G1 1HJ


JAYMILL LTD: Liquidation Proceedings
-------------------------------------
Company Name: Jaymill Ltd
Company No: IR
Appointed on: 20/11/00
Type: Members
Appointed by: Members
Liquidators: Thomas Murran IPno:
Firm Name: Peter O'Connor & Son
Address: Wyse House Adelphi Quay
City Postcode: Waterford


KILMARTIN CONSTRUCTION: Liquidation Proceedings
------------------------------------------------
Company Name: Kilmartin Construction Ltd
Company No: 3233300
Com. Business: Construction Co
Appointed on: 20/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: Peter O'Hara IPno: 6371
Firm Name: O'Hara & Co
Address: Wesley House Huddersfield Road
City Postcode: Birstall WF17 9EJ


P&O: Sells Half Of Unit to Cut Debt
------------------------------------
P&O has announced the sale of half its bulk shipping unit in a
move that will reduce its overall debt by 208 million pounds, The
Times reports yesterday. The company said it would receive 68
million pounds in cash from the sale of 50 per cent of its non-
core business in Associated Bulk Carriers (ABC). The 22-strong
fleet of its largest dry bulk cargo vessels will operate with
Eurotower Holdings, part of Samama, a private group of shippers
with global operations. The sale, which removes 140 million pounds
of net debt, comes after P&O abandoned a flotation of ABC on the
Oslo stock market.


TOMKINS: Report Clears Former CEO Hutchings
-------------------------------------------
Lawyers for Greg Hutchings, the former chief executive of Tomkins,
have claimed the investigation into allegations of corporate
excess at the engineering conglomerate had exonerated him. The
statement on behalf of Mr Hutchings, who ended 17 years at the
helm of the company when the inquiry was launched in October, was
issued as Tomkins declined to publish the long-awaited report by
accountants Ernst & Young for legal reasons.

Financial Times noted this week that Mr Hutchings' advisers said
confidentiality  agreements prevented his discussing the details
of the report at this stage, but added: "Mr Hutchings has been
advised that the conclusion to be drawn from that report is that
all remuneration and benefits which he received were within his
contractual arrangements and entitlements and had the necessary
authorizations and approvals."

In a letter to shareholders, the company argued that further
details of the report could not be provided until negotiations
over Mr Hutchings' compensation package had been resolved. It is
also understood publication has been hampered by fears that it
could be defamatory. Mr Hutchings' statement could herald a bitter
battle between him and the company over his compensation for
departure, expected to be as much as 2m pounds ($2.9m). One large
institutional shareholder said the compensation issue which
according to Mr Hutchings' advisers should be concluded by the end
of January would offer clues to the flavor of the report.

In the letter to shareholders, Tomkins said it was selling the
company jets, helicopter and two London flats that ignited the
controversy. It also said personnel not wholly engaged on the
affairs of the company had been removed from the payroll following
allegations that Mr Hutchings' wife and housekeeper had been paid
by the company. It said there would be no material financial
impact on the company arising from the disposals and would not
disclose how much it had spent on the review. The investigation
has prompted Tomkins to broaden the board's remit by requiring it
to approve recommendations of the remuneration committee and
approve donations, FT noted.


UNIVERSAL BANK: Nationwide and Egg to Help Fund
-----------------------------------------------
Egg and Nationwide, the two major non-High Street banks which have
so far provided no funding for the Universal Bank, are set to
change their position following pressure from the Government, The
Independent reports this week. The moves follow an announcement a
week ago by Stephen Byers, Secretary of State for Trade and
Industry, that almost all the high street banks have agreed partly
to fund the project. That left funding of about 50m pounds a year
still to be found to run the Universal Bank.

Egg, the UK's largest stand-alone internet bank, said yesterday
that it would be amenable to providing funding for the Bank, which
will make basic banking services through Post Office branches
available from 2002 to those traditionally excluded from using
financial services. Egg said: "We would certainly be interested in
helping financially, but at this stage we don't know to what
extent."

Nationwide, Britain's largest building society, which previously
expressed reluctance to donate funds, also said it would consider
providing some cash for the Bank, which is expected to cost a
total of 100m pounds a year to run and up to œ400m to set up. A
spokesman said: " We expect we will be contacted by the DTI in the
New Year and we will seek an understanding about what is expected
of us."


VAUXHALL:  Employees Should be Consulted on Closure, Say Unions
---------------------------------------------------------------
In the wake of the recent redundancies at Vauxhall, a poll shows
82 percent support for EU proposals aimed at making it a legal
requirement for companies to discuss closure plans with their
employees, Business Zone reports this week. Union leaders see EU
proposals requiring companies to discuss closure as a way to put
British workers on a level playing field with their European
colleagues. John Monks, TUC general secretary, said Vauxhall
should think again. "We are not giving up. We are demonstrating
that there needs to be a price paid by multi-national companies
who think they can up sticks and leave this country without
anybody having a crack."

The government opposes the proposals, as they apply only to
companies with 50 employees or more, including those operating
only in Britain. Bill Morris, TGWU leader, said British workers
found out about closures from the media. "At a stroke, British
ministers could end this shameful practice of keeping workers in
the dark by putting pen to paper and signing the directive." Other
union leaders, including Sir Ken Jackson of the AEEU, believe the
directive is less significant than the level of the euro or plans
to upgrade British workers' skills.

Trade and Industry Secretary Stephen Byers is known to be
sympathetic to the unions' case, but is expected to argue that the
EU directive would have made no difference to Vauxhall's plans
which are part of a global strategy to restore profitability to
its European operations of General Motors.


VERSAILLES: Investors Ready to Sue Carl Cushnie
-----------------------------------------------
A group of private shareholders in Versailles, the trade finance
company that collapsed in January with a 100 million pounds black
hole in the accounts, is preparing to sue Carl Cushnie, the former
chairman and chief executive, for hundreds of thousands of pounds'
worth of lost investments. The shareholders, many of whom are
pensioners who lost their life savings investing in the company,
have hired Houghton & Co, a firm of solicitors based in Hereford
which specializes in group actions, to pursue the claim. Frederick
Clough, the former finance director, who also faces a œ50 million
claim for fraud from PricewaterhouseCoopers, the Versailles
receiver, will be included in the private action, The Times
reports this week.

The shareholders are the first to seek redress from Mr Cushnie,
who has been helping the Serious Fraud Office and PwC with
inquiries since the company collapsed earlier this year. The
shareholders believe that Mr Cushnie and the rest of the
Versailles board could have been in breach of their fiduciary
duties as directors of a public company when Versailles collapsed.
PwC described the fraud perpetrated at Versailles as "long-running
and very complex", leading the shareholders to ask why Mr Cushnie,
who sold 29 million pounds' worth of Versailles shares before the
group collapsed, was completely unaware of the wrongdoing. The
fraud involved the creation of several "ghost" companies which
were used to transact fictitious business with Versailles and to
increase bank loans. The falsely inflated turnover and profits
from the deals sent the Versailles share price soaring.

Chris Tagg, the Houghton solicitor investigating the claim, said:
"It is important to realize that there is strength in numbers.
When claimants get together it is easier to investigate and then
to litigate. We are investigating Mr Cushnie, Mr Clough and the
company as a whole." Keith Oliver, a partner in Peters & Peters, a
legal firm representing Mr Cushnie, said any claim against the
former Versailles chairman "will be strenuously resisted". "Mr
Cushnie is an innocent victim in this case, along with many
others. Earlier this year it was revealed that private creditors
will receive none of the 37 million pounds they are owed by
Versailles and that the banks that lent the group money will
receive less than half of the 70.5 million pounds they are owed.



S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
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and Beard Group, Inc., Washington, DC USA.  Lexy Mueller, Mercy
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Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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